More than 300 workers have been affected after two suppliers to the aerospace, defence and power generation industries went into administration.
Bromford Industries and its subsidiary Accrofab called in administrators from Interpath Advisory on Thursday (March 9). There is no immediate threat to jobs.
The companies are based across three sites in Leicester, Derby and Alcester, and specialise in the precision manufacturing and fabrication of components and engine parts. Collectively, they employ 309 members of staff.
Joint administrators Ryan Grant and Chris Pole said that both businesses had faced a number of challenges in recent times including rising raw material and energy costs, supply chain disruption, and the wider impact on demand as a consequence of the pandemic.
In a statement Interpath said: 鈥淲hile the facilities at Derby and Alcester were continuing to trade well, operational issues at the Leicester facility further exacerbated the liquidity challenges faced by the companies.
鈥淚n recent weeks, attempts have been made to seek urgent additional financial support from customers in order for production to continue.
鈥淎fter a series of productive discussions, the directors of the businesses have taken steps to protect the interests of creditors by seeking the appointment of joint administrators.
鈥淭his will allow the companies to continue to trade while the administrators seek buyers for the businesses and their assets.
鈥淎ll members of staff will be retained by the administrators to enable trade to continue.鈥
The administrators said the US operations and businesses of Bromford Group, including AeroCision and Numet, continue to operate entirely as usual and outside of the administration process.
Ryan Grant, managing director at Interpath Advisory and joint administrator, said: 鈥淥ver the past 50 years, Bromford Industries has forged an excellent reputation as a tier one supplier of fabricated and machined components to the aerospace, defence and power generation sectors.
鈥淲e have been pleased with the positive conversations and financial support provided by customers in recent days, which has ultimately provided the businesses with a crucial lifeline.
鈥淲e鈥檇 also like to extend thanks to the companies鈥 employees for their support and understanding while this process has been underway.
鈥淥ur priority is now to seek buyers for the businesses and assets, and would urge any interested parties to contact us as soon as possible.鈥
